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I always struggle when it comes time to story plan for the Agent's Sales Journal annual critical illness feature. The product is a logical one — it offers lump sum payments to victims of heart attacks, strokes, and cancer, along with such conditions as Alzheimer’s and kidney failure. It’s also affordable — premiums may be as low as $20 per month for some policyholders. And it’s relatively simple to obtain, with most companies offering simplified underwriting and jet issue for lower-end policies.

Then why is it still such a relatively unknown product? In 2009, voluntary critical illness sales represented only 2 to 4 percent of total voluntary sales, while cancer insurance stood at 8 percent, according to Eastbridge Consulting, even though CI sales had increased nearly 88 percent between 2008 and 2009, and cancer sales had dropped by 8 percent.

Yet it’s clear that critical illness presents an unparalleled opportunity for insurance agents in all lines of business. While conducting interviews for this year’s critical illness feature, which will run in print and online in April 2011, J.R. Jordan, senior vice president at Colorado Bankers Services, explained why.

Annuity producers and those in wealth accumulation sales can protect their clients’ investments, ensuring they don’t have to dip into their accumulations to pay for treatment of a critical illness.

Life insurance agents who sell high-premium permanent life insurance can offer critical illness on a life insurance chassis, which will pay a lump sum to survivors and a death benefit to beneficiaries if they do not survive.

Those in mortgage sales with a health and life license can sell CI to prevent clients from foreclosing because of high medical bills.

Health insurance agents can get behind a product that offers additional income for them and additional protection for clients.

This last point is especially important given the environment in today’s market. With PPACA aiming to provide coverage for all, that coverage may not be all that we had hoped. As catastrophic treatment becomes more difficult to obtain, critical illness can fill that gap. The product is already most popular in countries with nationalized health care or health care reform — most notably, Great Britain and Canada.

It just may be that the critical illness market is poised for a takeoff.

Do you sell critical illness insurance? What have you found to be the most successful? And if you don’t sell it, why not? Share your experience in the comments below.

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About the Author

Editor of the Agent's Sales Journal, a print and online publication for life and health-licensed insurance agents dedicated to bringing the producer community the information they need to take their practice to the next level. More